I just read this article and found it blogworthy. http://article.nationalreview.com/?q=NjkxZDJjMTViZDQ4NzhkMTRmNGRlZGNmZjgzMzhkZGU=&w=MA== Dr. Frankenstein’s Wall Street by Victor Davis Hanson
My brain hurts. I’ve been reading about “complex derivatives” like “collateralized debt obligations,” “credit default swaps,” “distressed securities,” and “conservatorship.” My brain hurts. It’s treacherous going. No matter where one turns, there is no simple solution. (Or is there?)
So, what should we do? Throw up our hands in utter despair? Of course not. I strive to be an optimist. And now is no time for pessimism. I found this article helpful, too, in understanding all of this: http://www.latimes.com/news/opinion/la-oe-boot24-2008sep24%2C0%2C96527.story Don’t Sell America’s Economy Short
What is the answer? Of course, we bloggers already know all the answers. They’re all floating around up there in our heads, just waiting to be summoned and relayed via multiple synapses from our brains to our fingertips.
The market always takes care of itself. Unless messed with. And we’re messing with it. Like I’ve said before, something about nationalizing the financial markets really goes against the grain for me. But here are a few thoughts that keep persisting in my head while I’d rather be just mind-numbingly scrubbing the shower:
What we need is growth! We need to take down the obstacles that prevent growth in this country. (What are those obstacles?) High taxes! We need to stop penalizing profit and success. If we would only eliminate corporate taxes and capital gains tax, even for a short period of time, we’d be booming in a year! Our corporate tax rate is ridiculously high (35%). No wonder corporations move overseas–even in countries with socialized economies the corporate tax rate is considerably lower than this. I realize that it’s a knee-jerk reaction for some people (liberals) to just denounce corporations, but wait! Think about it, first! And the capital gains tax is at 15%. If lowered, think of the increased incentive to invest in this economy. All this bailout will do is further grow government. If this bailout provides a sudden government windfall, does anyone actually think that we’ll see any of it? Of course not. Has any Congress ever said, “Wow, extra money! Let’s cut back on spending and start cutting that deficit,” or “Hey! Let’s cut back some unnecessary programs and concentrate on Social Security.”
I’m getting all riled up, I know. Deep breath. Serenity now.
This financial crisis is NOT a free market screw-up. It’s a direct result of the crack-brained scheme of “compassionate” Democrats to offer predatory loans to people who didn’t happen to have the actual money to ever pay them back, or who didn’t even have to fill out a profession on the loan form, or even have to state how much money they were making. I’m all for people owning their own homes, but to offer someone who doesn’t have the money a risky loan for no reason other than “good intentions,” at the responsible taxpayer’s expense, is foolhardy and irresponsible. (Gee, why don’t you tell us how you really feel?)
No, I don’t have the answers. Plenty of thoughts, hence the blog. But no answers. Thank God it’s not my responsibility to come up with them. So, who do you trust? I’m sticking with conservatism.
And by the way, McCain asked that the first presidential debate (scheduled for Friday) be postponed so that this crises may be dealt with. Obama refused. So, while McCain has been in Washington trying to come up with a bipartisan solution to this crisis, Obama has been down in Florida hiding out, getting ready for this debate, apparently with himself. McCain has, of course, been criticized by some for trying to “avoid” the debate. Puh-leeze, people. McCain has continually asked for Obama to take part in something like 20 townhall type debates, to which Obama has refused every time. Even Bill Clinton, on Good Morning America this very morning, admitted that McCain isn’t afraid to debate Obama. It appears quite the other way around.